New Zealand's Economy Expands

In the article “New Zealand Economy Expands”, the message is one of economic recovery. According to statistics, production-based GDP increased by eight-tenths of a percent in a single economic quarter. The article credits “strong manufacturing activity” for the better than expected economic growth. It was stated that activity in the manufacturing industry (food, beverage and tobacco) rose 4.5%. An increase in demand led to the need for replenishment of manufacturing inventories.

While the article illustrates several positive marks for New Zealand’s economy, it also stresses that economic difficulties are not yet in the past. Despite stronger than expected activity, it should be noted that manufacturing numbers are still 16.5% lower than September 2005 levels. According to the article’s statistics, after a 3% rise in the previous quarter, primary industry activity fell 1.3% citing declines in fishing, forestry and mining. The New Zealand dollar remained steady at $0.70 U.S.